eToro & WisdomTree Partnership: Smart Portfolio for Commodities

eToro New XtremeWeather Portfolio for Climate-Resilient Investing

eToro has shared its latest investment offering, the XtremeWeather portfolio, catering to retail investors seeking exposure to companies poised to thrive amidst the rising frequency and severity of extreme weather events.

Comprising 30 carefully selected stocks spanning key industries such as renewable electricity, industrial machinery, supplies and components, fertilizers and agricultural chemicals, retail home improvement, electrical components and equipment, and gas, the XtremeWeather portfolio focuses on businesses pivotal to recovery and restoration efforts following extreme weather incidents.

eToro Launches XtremeWeather Portfolio

To curate the portfolio, eToro’s investment team conducted a thorough evaluation of thousands of stocks. The selection process took into account various criteria, including market capitalization, environmental, social, and governance (ESG) scores, liquidity parameters, analyst rankings, and trailing 12-month sales growth.

Dani Brinker, Head of Investment Portfolios at eToro, emphasized the significance of 2023 as the “year of climate change.” She stated, “From the effects of El Niño in Australia to the floods in Italy and the wildfires in Maui, almost no continent has been immune.” Brinker expressed the company’s commitment to providing retail investors with an avenue to climate-proof their portfolios and diversify into industries crucial for rebuilding communities, cities, and ecosystems affected by extreme climate events.

With the upcoming global climate conference, COP28, in mind, the XtremeWeather portfolio is positioned as an opportunity for investors to contribute to climate-resilient investments. The portfolio will undergo annual or on-demand rebalancing to ensure its relevance and optimize performance. In a bid to address the unpredictable nature of weather events and potential shifts in economic and governmental policies, the allocation strategy distributes equal weight across all 30 stocks (3.33%). This approach aims to mitigate concentration risk and enhance the overall resilience of the portfolio.

Investors can initiate their involvement with a minimum investment of USD $ 500. The platform provides tools and charts for tracking the portfolio’s performance, while eToro’s social feed keeps investors abreast of developments in the climate-resilient sector. However, it’s worth noting that the XtremeWeather portfolio is currently unavailable to users in the United States.

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